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Nintendo Incurring Loss on 3DS Hardware

Bloomberg Japan reports today that the new 3DS price point means Nintendo will incur a loss on every system sold. At a press conference in Osaka today, Nintendo CEO Satoru Iwata justified this by saying that such major moves were necessary in order to improve fiscal performance next year and beyond.

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handheldwars22307d ago

No, 3ds is $100 to manufacture.

Misterhbk2307d ago

The loss isn't really a 'loss' but they had to lower their expected earnings by a lot obviously, so they have less revenue then they were anticipating. This price cut wasn't planned months ago, so now they've had to adjust things.

MoveTheGlow2307d ago (Edited 2307d ago )

People cost money. If R&D spent a considerable amount of time on making an affordable 3D handheld at the expense of other work, and were paid pretty darn well, you'd better believe they were - along with all the costs they incur - included in the cost of making these systems, to say nothing of the costs of the manufacturing process.

And sure enough, in 3 years, when the tech doesn't cost as much and the R&D costs are a thing of the past, they'll be making money on this, or some new easy-to-improve 3ds iterative successor.

That said, the end product wasn't affordable at first - not in an era where casual gamers adopt phones much earlier than any handheld, and the economy across the globe is still trying to flail its way out of quicksand. So, taking a "hardware" loss on sales works out for them, as they'll still be selling software by the ton.

nikola9872307d ago

$100 to manufacture + distribution + advertising + R&D > $170

Micro_Sony2306d ago (Edited 2306d ago )

- The Materials Purchase Budget : (

subtenko2306d ago

Regardless of how much is cost to manufacture.. >_> Still puts Nintendo on the buyer beware list!

Im definitely not buying the WiiU early (if I buy one at all!) Nintendo's not gonna take a piss on me! I'll wait for them to piss on someone else first...you know..use them as a shield to block the stream...Then I'll be like "HA! you missed me!" :P Then a WiiUi will come out and i'll be like ".....sh**" xD

Agree or Disagree if you Agree

MoveTheGlow2306d ago

Well, I don't agree, so... what do I do if I only lol'd?

axisofweevils2306d ago (Edited 2306d ago )

They do it fairly frequently with their handhelds, but not their main consoles - the Wii console of 5 years ago is exactly the same as the Wii now.

Sure, you can upgrade it with various add ons, but the fact remains - the only thing Nintendo ever change in their main consoles is the colour.

In other words, there will never be a WiiUi - if a new version of the Wii U appeared, it would just be a different colour - everything else would be the same.

ndl15312306d ago

yes im one of those who got pissed on . as i just got my 3ds like three weeks ago i feel like nintendo F*CKED me good man and it happened twice the first time with the dsi too man the dsi had double the power of the ds but nothing was ever released for it i think i saw like one exlusive game on it . this one hurts more tho dammit

subtenko2306d ago (Edited 2306d ago )

@MoveTheGlow

Theres no option to Disagree in my comment but to simply not click either one. Thats the whole point for people to realize. You can have your lol's tho.. *slides plate of lolz on the table*

mmmm.....lolzy <--- ok so maybe that was corny..wait Im not saying lolz taste like corn...I...oh just forget it :/

Agree or Disagree if you Agree

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CrazyForGames2307d ago

if they sold the thing for 199 at launch like they should have they would have never had to take a loss like they did

if the profits on the 3DS will return 1 or 2 years from now like they suggested then that's actually kind of quick

BX812306d ago

I disagree. They might have sold a little more but you can't sell a system with the promise of software to come. They dropped the ball on both price and release titles.

Rashonality2307d ago

served them right for overpricing the 3RD.

Misterhbk2307d ago

you typed that on a phone black rash lol. My iphone always changes 3ds to 3RD Lol

Rashonality2306d ago (Edited 2306d ago )

fu**ing auto correct, lol.

Dwalls11712307d ago

Its sad but 3ds is a failure...should be 150.00 not 250.00

CrazyForGames2307d ago

its gonna be 170 in 2 weeks not 250

Optical_Matrix2307d ago

It's already sold nearly 4 million at £229.99. I'd hardly call that a failure. Although I bought one day one, I do think it was way overpriced and Nintendo shouldn't have been so foolhardy. They made the exact same mistake Sony did at the start of this console generation but seem to be rectifying it a lot more promptly. This must be the first time Nintendo has made a loss on a handheld system?

air12307d ago

The thing is over priced especially when compared to everything vita has to offer when that beast releases! Sony gas a golden opportunity to take the handheld market like nin took the console market.

I was disappointed with the psp but I hope they bring their A game this time around, nintendo pretty much said here you go Sony take this market.

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